8-KRegulation FD

EVERSOURCE ENERGY 8-K Report, Regulation FD Disclosure (Dec 10, 2009)

Filed December 10, 2009For Securities:ES

Summary

This 8-K filing by Northeast Utilities (NU) reports on a Letter of Intent filed by its subsidiary, The Connecticut Light and Power Company (CL&P), with the Connecticut Department of Public Utility Control (DPUC). CL&P intends to file an application to increase its distribution rates, with the increases to be implemented over a two-year period starting July 1, 2010. This rate adjustment is strategically designed to be revenue-neutral for customers. Crucially, the proposed distribution rate increase will be offset by a reduction in CL&P's Competitive Transition Assessment (CTA) charge. This reduction is a direct result of CL&P repaying its rate reduction bonds by the end of 2010. Consequently, the net effect on customer bills is expected to be zero, mitigating potential customer concerns about higher utility costs.

Key Highlights

  • 1CL&P, a subsidiary of Northeast Utilities, filed a Letter of Intent with the Connecticut DPUC.
  • 2The company intends to file an application to increase its distribution rates.
  • 3The proposed rate increase will be phased in over a two-year period, starting July 1, 2010.
  • 4The distribution rate increase will be offset by a reduction in the Competitive Transition Assessment (CTA) charge.
  • 5The CTA reduction is due to the repayment of CL&P's rate reduction bonds by the end of 2010.
  • 6The overall impact on customer bills is expected to be neutral.

Frequently Asked Questions

The main purpose of this filing is to inform investors that Northeast Utilities' subsidiary, The Connecticut Light and Power Company (CL&P), has submitted a Letter of Intent to the Connecticut DPUC regarding a future application to increase distribution rates.

No, customers are not expected to see an overall increase in their utility bills. While CL&P plans to increase its distribution rates, this will be fully offset by a reduction in the Competitive Transition Assessment (CTA) charge, resulting in a neutral impact on total customer costs.

CL&P intends to file its application for the rate increase around January 8, 2010. The proposed rate changes are planned to be phased in over a two-year period, beginning on July 1, 2010.

The CTA charge is being reduced because CL&P is scheduled to repay its rate reduction bonds by the end of 2010. This repayment allows for a decrease in the associated charge that customers pay.